Canadian Dollar And Business Outlook

By Commodity News Service Canada

WINNIPEG, April 11 The Canadian dollar was slightly firmer compared to its US counterpart at 8:57 CDT Thursday, underpinned by data from China showing that the country’s economy is growing, analysts said.

At 8:57 CDT Thursday, the Canadian dollar was at US$0.9895 or US$=C$1.0106, which compares with Wednesday’s North American close of US$0.9858 or US$=C$1.0144.

Good US jobless claims data was also supportive for the Canadian dollar. According to the US Labour Department, jobless insurance claims decreased by 42,000, to 346,000, last week.

Positive Canadian housing data further underpinned the value of the Canadian dollar. According to Statistics Canada, the New Housing Price Index rose 0.2% in February, following an increase of 0.1% in January.

However, the loonie’s upside potential was limited by spill over pressure from the weakness seen in commodity prices, including crude oil and gold.

The TSX was down 52.21 points, or 0.42%, at 8:57 CDT Thursday morning to sit at 12,482.70.